Post navigation

Deutsche Bank, scandals bank

Deutsche Bank fired its Argentine office’s president who was involved in a corruption case. The former DB’s President was accused of manipulating the foreign exchange rate against the Argentine peso causing serious financial turbulence for the country.

The reason for the current turmoil are reports that the bank in the US may expect a fine of 14 billion dollars due to the resale of subprime mortgages. In 2013, Deutsche Bank paid in the United States for a fine of 1.4 billion euros due to the sale of bad mortgages.

Deutsche Bank was also a key player in the scandal surrounding the Libor rate. Banks among themselves manipulated the interest rates for their own benefits. The European Commission imposed a fine of 725 million euros. Also, Britain and the US imposed on the bank fines, together $ 2.5 billion. In the US investors may still go to court.

Fiddling with foreign exchange and derivatives

According to German media, the ongoing investigation in any case demonstrated that there is cheating with the Russian ruble. In the US already a fine was paid of $ 50 million for illegally influencing the swap index Isdafix.

The US Justice Deutsche Bank suspects of having helped US customers in evading tax through Switzerland. The investigation is still ongoing, but in 2010 the bank had already paid $ 550 million in fines.

Kirch Media Group

The justice department in Germany stated in 2012 that Deutsche Bank is partly responsible for the failure of the German media company Kirch in 2002. The then CEO Rolf Breuer speculated openly about the creditworthiness of Kirch. Damages: 925 million euros.

FRANKFURT— Historians combing through Deutsche Bank AG archives have found evidence that the biggest German bank helped finance construction of the Auschwitz death camp, the chief historian of the bank said Thursday.

Very quickly the bank became involved in the criminal activities of the Nazi regime, including taking over Jewish-owned merchant banks, appropriating bank accounts of Jewish customers, and, most importantly, managing the Aryanization of German industry – which was an especially lucrative business for Deutsche Bank.

What is fascinating is how the bank and its lawyers went to enormous lengths to put a legalistic veneer on this illegal theft of Jewish private property. Documents were carefully notarized and share certificates were painstakingly collected and recorded.

After the Anschluss of Austria and the invasion of Poland, Deutsche Bank’s international contacts and experience were invaluable to the Nazi regime.

A cache of emails leaked by a whistleblower confirms previous allegations that the Royal Bank of Scotland (RBS) deliberately destroyed the livelihoods of its small business customers to boost its own profits. Furthermore, the record shows that Britain’s political and financial authorities knew all about it and never lifted a finger: here.

The perks came in exchange for him agreeing inappropriate loans to struggling businesses, which allowed Mr Mills and his associates to profit from high consultancy fees.

Many of the businesses went bankrupt as a result and some of the owners lost their homes.

Mr Mills and his wife Alison Mills, 51; Michael Bancroft, 73; Mark Dobson, 55; and John Cartwright, 71, were convicted of various roles in the fraud, which ran between 2003 and 2007, after a four-month trial at Southwark Crown Court.

The Crown Prosecution Service fraud division’s Stephen Rowland said: “This had a very real impact on a lot of people, individuals who had worked hard to build up companies.

“They found themselves losing their companies and in many cases losing their homes as well as suffering enormous emotional strain and trauma.

“There’s no way this was a victimless crime — as a result of this crime, real people suffered great hardship.”

Mr Scourfield, who pleaded guilty last year, looked after corporate customers experiencing financial difficulties at HBOS’s branch in Reading until he resigned in 2007.

One company, Clode, was operating within its £2.9m overdraft in 2002 when a meeting was held to discuss its financial position. Its total indebtedness to the bank by 2007 topped £20m.

His wife also played an active role in the scheme. She invited Mr Dobson and Mr Scourfield and his wife on trips to Ascot. Mr Mills, Mr Bancroft, Mr Scourfield and their wives holidayed in Barbados to celebrate her 40th birthday.